Week of 05/08-05/12 April's CPI report cooler than expected, debt ceiling worries

Wednesday morning investors celebrated the announcement of April's Consumer Price Index (CPI) report coming in better-than-expected at 4.9%. This report measures the price that you pay for goods over time and it is a good reflection of inflation. With inflation being a hot topic in the recent years, the CPI report has been an important tool for investors to get an idea of where inflation and monetary policy may be headed. The good news shortly subsided as worries about the debt ceiling and a potential default came out. President Biden and leaders of Congress met to discuss potential options to either raise the debt ceiling of cut spending costs to prevent defaulting on the country's debt. Treasury Secretary, Janet Yellen, stated on an interview that the day when the government could run out of funds could be as soon as June 1st. This could place the nation in a critical position where the consequences include a devastating depression with millions of Americans losing their jobs.